Elastic (ESTC) Q4 2026 earnings summary

Executive summary

• Finished FY26 strong with Q4 revenue of $451 million, up 16% year-over-year, and FY26 revenue of $1.739 billion, up 17% year-over-year, marking the seventh consecutive quarter of disciplined execution.

• Accelerating customer commitments, with CRPO growth at 20% and RPO growth at 28% year-over-year in Q4; net expansion rate at 112% and over 1,720 customers with ACV over $100,000.

• AI adoption is a major growth driver, with over 600 customers using AI capabilities and more than 1/3 of $100,000+ ACV customers leveraging AI.

• Record Q4 for $1 million deals; over 240 customers in the $1M+ ACV cohort and 30% growth in $5M+ ACV customers.

• Achieved significant product innovations, industry recognition, and expanded partnerships with AWS, Google Cloud, and Microsoft Azure.

Financial highlights

• Q4 total revenue was $451 million, up 16% year-over-year; FY26 revenue was $1.739 billion, up 17% year-over-year.

• Q4 sales-led subscription revenue was $375 million, up 19% year-over-year; FY26 sales-led subscription revenue grew 20%.

• Q4 non-GAAP operating margin was 14.8%; FY26 non-GAAP operating margin reached 16.4%.

• Adjusted free cash flow for FY26 was $346 million, with a 20% margin.

• Q4 non-GAAP EPS was $0.61; FY26 non-GAAP EPS was $2.57.

Outlook and guidance

• FY27 total revenue expected at $1.985–$2.0 billion, up 14.6% year-over-year at midpoint.

• FY27 sales-led subscription revenue expected at $1.673–$1.688 billion, up 16.9% at midpoint.

• FY27 non-GAAP operating margin expected at ~19%; non-GAAP EPS $3.21–$3.29; adjusted free cash flow margin at ~21.5%.

• Q1 FY27 revenue guidance: $469–$470 million (13.1% growth at midpoint); Q1 sales-led subscription revenue: $392–$393 million, up 15.9%.

• Medium-term FY29 non-GAAP operating margin target raised to ~25%.